The first step in the capital budgeting process is determine cashflow. idea development. collection of data. assign probabilities.

The first step is the idea development. The proper order for the capital budgeting process is search for and discovery of investment opportunities, then there is a collection of data, then there is an evaluation and decision making, and then if it is necessary there is a reevaluation and adjustment. This is used to determine whether an organization's long term investments are worth the funding of cash through the firm's capitalization structure